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Recall the Application About Fed Chairman Ben Bernanke's Views on How

Question 75

Multiple Choice

Recall the Application about Fed Chairman Ben Bernanke's views on how to fight a liquidity trap to answer the following question(s) .
-According to the Application, future Fed Chairman Ben Bernanke criticized the Bank of Japan for not taking strong enough action when their interest rates fell close to zero. Bernanke argued that the Bank of Japan should have made substantial purchases of ________ and also publicly commit to ________ inflation.


A) long-term bonds; increasing
B) long-term bonds; decreasing
C) short-term bonds; increasing
D) short-term bonds; decreasing

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